Prepare the journal entry to record the transaction of dec

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Question

On December 31, 2020, Skysong Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Skysong Co. agreed to accept a $264,100 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Skysong is much more creditworthy and has various lines of credit at 6%.

a) Prepare the journal entry to record the transaction of December 31, 2020, for the Skysong Co

b) Assuming Skysong Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2021.

c) Assuming Skysong Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2022.

Reference no: EM132406450

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